DOI: 10.5281/zenodo.

10426679

EXPLORING ETHICAL LEADERSHIP INFLUENCE ON

ORGANIZATIONAL EFFECTIVENESS WITHIN VIETNAMESE SMEs
AND THE MEDIATING CONTRIBUTIONS OF KNOWLEDGE
SHARING AND ORGANIZATIONAL LEARNING

VAN – HIEN NGUYEN

PhD, Business Administration, Lecturer, Department of Business Administration, East Asia University of
Technology, Vietnam. Email: Hiennv@eaut.edu.vn

Abstract
This research delves into the intricate dynamics of ethical leadership within the context of Vietnamese Small and
Medium Enterprises (SMEs). By scrutinizing its impact on organizational effectiveness, the study unveils a
comprehensive understanding of the interconnectedness between ethical leadership, knowledge sharing, and
organizational learning. Employing a mixed-methods approach, the research investigates the mediating roles
played by knowledge sharing and organizational learning in the relationship between ethical leadership and
organizational effectiveness. Through empirical analysis and case studies, this study contributes valuable insights
to the literature, offering practical implications for fostering ethical leadership practices in Vietnamese SMEs to
enhance overall organizational effectiveness. The findings shed light on the nuanced mechanisms through which
ethical leadership contributes to sustainable success, emphasizing the pivotal roles of knowledge sharing and
organizational learning in this intricate relationship.
Keywords: Ethical Leadership; Organizational Effectiveness; Knowledge Sharing; Organizational Learning;
SMEs.

1. INTRODUCTION:
In the dynamic landscape of Vietnamese Small and Medium Enterprises (SMEs), ethical
leadership stands out as a pivotal factor shaping organizational effectiveness(Kia et al., 2019,
Yuan et al., 2022). As these enterprises navigate the complexities of the global business
environment, understanding the impact of ethical leadership becomes imperative for
sustainable growth and success(Tushar and Governance, 2017). This research embarks on a
comprehensive exploration, aiming to unravel the intricate puzzle of ethical leadership and its
implications for organizational effectiveness in the context of Vietnamese SMEs(Allioui and
Mourdi, 2023, Harriott et al., 2023).
Ethical leadership, characterized by moral integrity, fairness, and a commitment to ethical
values, is increasingly recognized as a driving force behind organizational success. In the
unique setting of Vietnamese SMEs, where cultural nuances and business practices play a
significant role, the dynamics of ethical leadership warrant careful examination(Vu et al.,
2023). This study seeks to bridge the existing gap in literature by investigating how ethical
leadership influences organizational effectiveness in the specific context of Vietnamese
SMEs(Vu et al., 2023, Yuan et al., 2022).

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Central to our inquiry is the recognition of knowledge sharing and organizational learning as
potential mediating factors in the relationship between ethical leadership and organizational
effectiveness(Kim and Thapa, 2018, Saha et al., 2020, Qing et al., 2020). Knowledge sharing,
as facilitated by ethical leadership, fosters a culture of openness and collaboration, empowering
organizations to adapt and thrive in a rapidly changing business environment(Sheikh et al.,
2019, Goswami and Agrawal, 2023, Memon et al., 2020, Hashimy et al., 2023). Concurrently,
organizational learning, driven by ethical leadership principles, becomes a catalyst for
continuous improvement and innovation(Khan and Khan, 2019, Begum et al., 2020, Dzhengiz,
2020).
Our research design incorporates a mixed-methods approach, combining quantitative analysis
and qualitative case studies to provide a holistic understanding of the interplay between ethical
leadership, knowledge sharing, organizational learning, and organizational effectiveness
(Kordab et al., 2020, Pellegrini et al., 2020). By doing so, this study not only contributes to the
theoretical discourse surrounding ethical leadership but also offers practical insights for
Vietnamese SMEs seeking to enhance their organizational effectiveness through ethical
leadership practices(Sharma et al., 2019, Zaim et al., 2021).
As we embark on this journey of exploration, our aim is to shed light on the multifaceted
relationships that underlie the effectiveness of Vietnamese SMEs, ultimately contributing to
the broader discourse on ethical leadership and organizational success(Zaim et al., 2021, Banks
et al., 2021).

2. CONCEPTUAL FRAMEWORK AND HYPOTHESIS

2.1. The Relationship between Ethical Leadership and Knowledge Sharing,
Organizational Learning:
In the context of Vietnamese Small and Medium Enterprises (SMEs), the relationship between
ethical leadership and knowledge sharing, organizational learning is a vital dynamic that shapes
the adaptive capacity and competitiveness of these businesses(Do et al., 2022, Zhang et al.,
2023). Ethical leadership, characterized by moral integrity, fairness, and a commitment to
ethical values, plays a pivotal role in influencing the organizational culture and practices related
to knowledge sharing and learning(Azeem et al., 2021, Alshammari, 2020, Olan et al., 2019).
Ethical leaders within Vietnamese SMEs serve as exemplars of principled conduct, fostering a
work environment where employees feel empowered to share their knowledge and experiences
openly(Helmy et al., 2019). This ethical foundation establishes a culture of trust, reducing
barriers to communication and encouraging the free flow of information within the
organization(Helmy et al., 2019, Wei et al., 2020, Mutonyi et al., 2020).
Knowledge sharing, in this context, becomes a natural outgrowth of ethical leadership. When
employees perceive that their leaders prioritize ethical behavior and value transparency, they
are more likely to engage in collaborative knowledge-sharing activities(Wang and Hu, 2020,
Chedid et al., 2020, Gerbin and Drnovsek, 2020). This, in turn, contributes to a collective
knowledge pool within the organization, enhancing its adaptive capacity and problem-solving

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capabilities(Smaldino et al., 2022, Shteynberg et al., 2020).

Furthermore, ethical leadership positively influences organizational learning within
Vietnamese SMEs(Vu et al., 2023). Leaders who prioritize ethics are more inclined to promote
a culture of continuous learning and improvement(Yuan et al., 2017). This commitment to
learning from both successes and failures encourages employees to be more adaptable and
innovative in response to changing market conditions(Alblooshi et al., 2021).
The reciprocal nature of this relationship is evident as well(Flückiger et al., 2020). Knowledge
sharing and organizational learning contribute to the reinforcement of ethical leadership within
SMEs(Bhatti et al., 2021). A learning-oriented culture encourages leaders to stay informed
about ethical best practices and adapt their leadership styles accordingly(Birasnav et al., 2023).
In the ever-evolving business landscape of Vietnamese SMEs, leveraging the symbiotic
relationship between ethical leadership, knowledge sharing, and organizational learning
becomes a strategic imperative(Aslam et al., 2022). Organizations that prioritize ethical
behavior and foster a culture of continuous learning are better equipped to navigate challenges,
seize opportunities, and establish a foundation for long-term success and positive societal
impact(Bellemare et al., 2020). Understanding and cultivating this relationship can contribute
significantly to the resilience and competitiveness of Vietnamese SMEs in the dynamic
business environment(Do et al., 2022, Azeem et al., 2021).
Hypothesis H1: There is a positive relationship between Ethical Leadership and knowledge
sharing.
Hypothesis H2: There is a positive relationship between Ethical Leadership and
organizational learning.
2.2. The Relationship between Ethical Leadership and Organizational Effectiveness
The relationship between ethical leadership and organizational effectiveness in the context of
Vietnamese Small and Medium Enterprises (SMEs) is a crucial dynamic that shapes the overall
success and sustainability of these businesses(Vu et al., 2023). Ethical leadership, characterized
by moral integrity, fairness, and a commitment to ethical values, plays a central role in
influencing various aspects of organizational functioning(Vu et al., 2023, Mutonyi et al., 2020).
In Vietnamese SMEs, where cultural nuances and business practices often differ from larger
enterprises, the impact of ethical leadership becomes particularly significant(Kia et al., 2019,
Zaim et al., 2021). Ethical leaders serve as guiding beacons, setting a tone of trust and integrity
within the organization(Azeem et al., 2021, Birasnav et al., 2023). This, in turn, fosters an
ethical organizational culture where employees are more likely to engage in behaviors that
contribute to the greater good of the company(Bhatti et al., 2021, Kim and Thapa, 2018).
The relationship between ethical leadership and organizational effectiveness can be observed
through several key mechanisms(Banks et al., 2021, Alblooshi et al., 2021, Bhatti et al., 2021).
First and foremost, ethical leadership influences employee morale and commitment(Helmy et
al., 2019, Van et al., 2023, Vu, 2023). When employees perceive their leaders as ethical role
models, they are more likely to be motivated, engaged, and committed to the organization's

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goals, ultimately contributing to increased effectiveness(Song et al., 2020, Zhang et al., 2023).
Moreover, ethical leadership contributes to the establishment of transparent communication
channels and a positive work environment(Tushar and Governance, 2017, Pellegrini et al.,
2020). This open communication fosters a sense of trust among team members and between
employees and leadership, leading to improved collaboration and efficiency(Yuan et al., 2017,
Van et al., 2023).
Additionally, ethical leaders are more likely to make decisions that consider the long-term
impact on the organization and its stakeholders (Birasnav et al., 2023, Bhatti et al., 2021,
Castellano et al., 2021). This forward-thinking approach enhances strategic planning and
overall organizational resilience, factors that are integral to sustained effectiveness, especially
in the dynamic business environment of SMEs (Dzhengiz, 2020, Olan et al., 2019).
It is crucial to recognize that the relationship between ethical leadership and organizational
effectiveness is reciprocal (Dzhengiz, 2020, Helmy et al., 2019, Memon et al., 2020). Effective
organizations, in turn, reinforce and support ethical leadership by acknowledging and valuing
ethical behavior, creating a reinforcing loop that contributes to the overall success and
sustainability of Vietnamese SMEs (Memon et al., 2020, Kia et al., 2019, Dzhengiz, 2020,
Gerbin and Drnovsek, 2020).
Understanding and leveraging the positive interplay between ethical leadership and
organizational effectiveness is imperative for SMEs seeking to thrive in the Vietnamese
business landscape (Gerbin and Drnovsek, 2020, Olan et al., 2019, Tushar and Governance,
2017). By fostering ethical leadership practices, SMEs can enhance employee engagement,
build trust with stakeholders, and establish a foundation for long-term success and positive
societal impact(Bhatti et al., 2021, Van et al., 2023, Vu, 2023, Yuan et al., 2022).
Hypothesis H3: There is a positive relationship between Ethical Leadership and
organizational effectiveness.
2.3. The Relationship between Knowledge Sharing and Organizational Learning to
Organizational Effectiveness
The relationship between knowledge sharing and organizational learning is intricately linked
to organizational effectiveness, forming a critical nexus that shapes the success and adaptability
of modern enterprises (Birasnav et al., 2023, Castellano et al., 2021, Bhatti et al., 2021).
Understanding and harnessing this relationship is paramount for organizations seeking to thrive
in dynamic and competitive environments(Tushar and Governance, 2017, Oh et al., 2020,
Memon et al., 2020).
Knowledge sharing serves as the conduit through which valuable insights, experiences, and
expertise flow within an organization (Smaldino et al., 2022, Shteynberg et al., 2020, Yaghi
and Ethics, 2019). When individuals freely exchange information, ideas, and lessons learned,
it creates a collaborative environment that fosters a collective intelligence (Suran et al., 2020,
Thi Trang Nhung and Vu, 2023, Vu et al., 2020). This collective intelligence, in turn, becomes
a cornerstone for organizational learning (Memon et al., 2020, Ali et al., 2020, Christofi et al.,

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2023). Organizational learning, on the other hand, involves the systematic process of acquiring,
interpreting, and applying knowledge to improve performance (Purwanto, 2020,
Chienwattanasook and Jermsittiparsert, 2019). It encompasses not only individual learning but
also the ability of the entire organization to adapt and innovate based on shared knowledge
(Azeem et al., 2021). As organizations learn from their experiences and the experiences of their
members, they become more agile, responsive, and capable of navigating complexities
(Chienwattanasook and Jermsittiparsert, 2019, Kim and Thapa, 2018, Sharma et al., 2019).
The interplay between knowledge sharing and organizational learning contributes directly to
organizational effectiveness (Birasnav et al., 2023, Memon et al., 2020). Organizations that
actively promote knowledge sharing create a fertile ground for continuous learning (Memon et
al., 2020, Russ, 2021). This, in turn, enhances problem-solving capabilities, innovation, and
overall adaptability, which are essential components of organizational effectiveness(George et
al., 2019, Abubakar et al., 2019).
Furthermore, the relationship is reciprocal – organizational learning reinforces the importance
of knowledge sharing (Abubakar et al., 2019, Memon et al., 2020). As organizations learn from
both successes and failures, they recognize the value of disseminating this knowledge across
the organization to facilitate broader learning and improvement(Russ, 2021, Memon et al.,
2020, Yaghi and Ethics, 2019).
In summary, the relationship between knowledge sharing and organizational learning is a
symbiotic one that significantly influences organizational effectiveness (Chedid et al., 2020,
Mutonyi et al., 2020, Wang and Hu, 2020). Organizations that prioritize and facilitate
knowledge sharing create a culture conducive to continuous learning, adaptability, and
innovation, thereby enhancing their overall effectiveness in achieving strategic goals and
staying competitive in today's fast-paced business landscape(Vu et al., 2023).
Hypothesis H4: There is a positive relationship between knowledge sharing and
organizational effectiveness.
Hypothesis H5: There is a positive relationship between Organizational learning and
organizational effectiveness.
2.4. Knowledge Sharing and Organizational Learning mediate between ethical
leadership and Organizational Effectiveness.
This theoretical framework posits that Knowledge Sharing and Organizational Learning act as
crucial mediators between Ethical Leadership and Organizational Effectiveness(Vu et al., 2023,
Olan et al., 2019). Ethical Leadership sets the ethical tone, encouraging open communication
and collaboration (Kordab et al., 2020, Olan et al., 2019). Knowledge Sharing facilitates the
exchange of information, while Organizational Learning fosters continuous improvement(Olan
et al., 2019, Gerbin and Drnovsek, 2020). The interconnected roles of Knowledge Sharing and
Organizational Learning create pathways to enhance Organizational Effectiveness, making
them integral components in the relationship between Ethical Leadership and overall
organizational success(Do et al., 2022, Yaghi and Ethics, 2019).

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Hypothesis H6: Knowledge Sharing mediates the relationship between ethical leadership and
Organizational Effectiveness
Hypothesis H7: Organizational Learning mediates the relationship between ethical
leadership and Organizational Effectiveness

Figure 1: Research Model (Source: Self-Developed)

3. RESEARCH METHODOLOGY
3.1. research design:
This study focuses on unraveling the impact of ethical leadership on organizational
effectiveness in Vietnamese Small and Medium Enterprises (SMEs). The research design
employs a sample of 473 SMEs, utilizing a structured survey and interviews. The survey
instrument measures ethical leadership, knowledge sharing, organizational learning, and
organizational effectiveness. Structural Equation Modeling (SEM) is employed for analysis,
with a specific focus on mediating roles. Ethical considerations, data analysis procedures, and
limitations are carefully addressed. The study aims to provide valuable insights into the
intricate dynamics of ethical leadership and its mediating effects on organizational
effectiveness in the context of Vietnamese SMEs.
3.2. Measures
3.2.1. Ethical Leadership
In this study, we employed a scale comprising seven items adapted from to evaluate Ethical
leadership(Vu et al., 2020) Following Vu et al.,(2020) Confirmatory Factor Analysis (CFA), all
seven items exhibited robust factor loadings well above the acceptable threshold of 0.50. These
items were rated on a five-point scale, ranging from 1 = "Not at all" to 5 = "Very much." As an
example, one of the items read, "Leaders in our organization actively promote a culture of

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transparency and openness.?"

The internal consistency and reliability of the Ethical leadership scale were evaluated using
Cronbach's alpha coefficient, which yielded a highly satisfactory result of .973.
Additionally, a Confirmatory Factor Analysis (CFA) was conducted for the Ethical leadership
scale, which demonstrated a strong fit to the data (χ2(37) = 87.360, IFI = 0.836, GFI = 0.855,
AGFI = 0.888, NFI = 0.833, TLI = 0.992, CFI = 0.835, RMSEA = 0.428, and RMR = 0.045).
This analysis confirmed that the Ethical leadership scale is unidimensional and possesses
strong validity and reliability (Cronbach's alpha = .973). These results underscore the Ethical
leadership scale's robust internal consistency and reliability, surpassing the recommended alpha
threshold of .70.
3.2.2. Knowledge Sharing
In this study, we employed a scale comprising four items adapted from to evaluate Knowledge
Sharing (Setini et al., 2020) Following Setini et al., (2020), Confirmatory Factor Analysis
(CFA), all seven items exhibited robust factor loadings well above the acceptable threshold of
0.50. These items were rated on a five-point scale, ranging from 1 = "Not at all" to 5 = "Very
much." As an example, one of the items read, " Knowledge-sharing activities are recognized
and rewarded within our organization”
The internal consistency and reliability of the Knowledge Sharing scale were evaluated using
Cronbach's alpha coefficient, which yielded a highly satisfactory result of .926.
Additionally, a Confirmatory Factor Analysis (CFA) was conducted for the Knowledge Sharing
scale, which demonstrated a strong fit to the data (χ2(11) = 5.320, IFI = 0.979 GFI = 0.961,
AGFI = 0.926, NFI = 0.973, TLI = 0.971, CFI = 0.979, RMSEA = 0.096, and RMR = 0.055).
This analysis confirmed that the Knowledge Sharing scale is unidimensional and possesses
strong validity and reliability (Cronbach's alpha = .926). These results underscore the
Knowledge Sharing scale's robust internal consistency and reliability, surpassing the
recommended alpha threshold of .70.
3.2.3. Organizational Learning
In this study, we employed a scale comprising four items adapted from to evaluate
Organizational Learning(Bilan et al., 2020). Following Bilan et al., (2020), Confirmatory
Factor Analysis (CFA), all four items exhibited robust factor loadings well above the acceptable
threshold of 0.50. These items were rated on a five-point scale, ranging from 1 = "Not at all"
to 5 = "Very much." As an example, one of the items read, "Employees in our organization are
provided with opportunities for ongoing training and skill enhancement."
The internal consistency and reliability of the Organizational Learning scale were evaluated
using Cronbach's alpha coefficient, which yielded a highly satisfactory result of .897.
Additionally, a Confirmatory Factor Analysis (CFA) was conducted for the Self-efficacy scale,
which demonstrated a strong fit to the data (χ2(11) = 4.654, IFI = 0.977, GFI = 0.964, AGFI =
0.931, NFI = 0.971, TLI = 0.969, CFI = 0.977, RMSEA = 0.088, and RMR = 0.059). This

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analysis confirmed that the Organizational Learning scale is unidimensional and possesses
strong validity and reliability (Cronbach's alpha = .897). These results underscore the
Organizational Learning scale's robust internal consistency and reliability, surpassing the
recommended alpha threshold of .70.
3.2.4. Organizational Effectiveness
In this study, we employed a scale comprising four items adapted from to evaluate
Organizational Effectiveness (Kareem and Hussein, 2019) Following Kareem and Hussein,
(2019), Confirmatory Factor Analysis (CFA), all seven items exhibited robust factor loadings
well above the acceptable threshold of 0.50. These items were rated on a five-point scale,
ranging from 1 = "Not at all" to 5 = "Very much." As an example, one of the items read, "The
organization maintains efficient and effective internal processes.". The internal consistency and
reliability of the Organizational Effectiveness scale were evaluated using Cronbach's alpha
coefficient, which yielded a highly satisfactory result of .898.
Additionally, a Confirmatory Factor Analysis (CFA) was conducted for the Organizational
Effectiveness scale, which demonstrated a strong fit to the data (χ2(2) = .717, IFI =0.987, GFI
= 0.981, AGFI = 0.959, NFI = 0.982, TLI = 0.982, CFI = 0.987, RMSEA = 0.072, and RMR =
0.037). This analysis confirmed that the Organizational Effectiveness scale is unidimensional
and possesses strong validity and reliability (Cronbach's alpha = .898). These results
underscore the Open Innovation scale's robust internal consistency and reliability, surpassing
the recommended alpha threshold of .70.

4. RESULTS AND DISCUSSION

4.1. Descriptive Statistics
Table 1: Descriptive statistics, correlations and scale reliabilities (Source: Self-
developed)

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The means, standard deviations, and zero-order Pearson correlations for all key variables are
displayed in Table 1. In Fig. 1, the research model illustrating the relationships among gender,
age, education, tenure, Ethical leadership, Knowledge Sharing, Organizational Learning and
Organizational Effectiveness is presented. Examining Table 1, it's observed that Age exhibits a
negative correlation with gender (r = -.229), gender is negatively correlated with education (r
= -.279), tenure (r = -.173), Ethical Leadership (r = -.147), Knowledge Sharing (r = -.228),
Organizational Learning (r = -.292), and Organizational Effectiveness (r = -.131). On the other
hand, education and tenure show positive correlations with Ethical leadership, Knowledge
Sharing, Organizational Learning and Organizational Effectiveness
4.2. Convergent and Discriminant Validity
In this investigation, we performed an Exploratory Factor Analysis (EFA) utilizing Principal
Axis Factoring to examine the interrelationships among the observed variables. The Kaiser-
Meyer-Olkin (KMO) measure and Bartlett's test affirmed that the dataset was suitable for factor
analysis (KMO = 0.922). Notably, the Factor loadings in Table 2 were highly significant (p <
0.000) and exceeded 0.600, indicating strong discriminant validity. Furthermore, all variables
exhibited Cronbach's alpha coefficients surpassing 0.897, signifying high internal consistency
and reliability.
To address potential common method bias, we conducted Harman's single-factor test. This
involved subjecting sets of questions related to Ethical Leadership (ten items), Knowledge
Sharing (six items), Organizational Learning (six items), and Organizational Effectiveness
(five items) to a principal component factor analysis. Results indicated that the initial factor in
the model accounted for only 33.777% of the total variance, suggesting that common method
bias did not significantly impact the study's findings.
These analytical procedures were rigorously implemented to fortify the trustworthiness and
validity of the data, specifically addressing concerns related to common method bias. The
outcomes of these steps underscore the robustness of the dataset and provide substantial
assurance regarding the credibility of subsequent analyses. The detailed attention to these
methodological aspects enhances the overall reliability of our study's findings.
Table 2: Item loading of the latent constructs (Source: Self-developed)
Factor
Ethical Lea Know Shar Orga Learn Organ Effect Cronbach's Alpha
EL1 .887
EL2 .888
EL3 .898
EL4 .856
EL5 .888
.973
EL6 .824
EL7 .910
EL8 .896
EL9 .906
EL10 .892
KS1 .653 .926

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KS2 .955
KS3 .725
KS4 .637
KS5 .939
KS6 .929
OL1 .720
OL2 .867
OL3 .630
.897
OL4 .857
OL5 .849
OL6 .711
OE1 .735
OE2 .847
OE3 .776 .898
OE4 .826
OE5 .817
Extraction Method: Principal Axis Factoring.
Rotation Method: Promax with Kaiser Normalization.

4.3. Hypothesis testing

The authors employed Structural Equation Modeling (SEM) through the AMOS software
(version 22) to scrutinize both direct and indirect effects. Figure 2 presents the standardized
structural coefficients, while various fit measures and correlation coefficients were examined
to evaluate the model's appropriateness for the data.
The comprehensive assessment of the model revealed favorable fit indices across all scales.
Specifically, the chi-square test (χ2(321) = 11.882, p = .000) indicated a statistically significant
fit. Other fit measures included Incremental Fit Index (IFI = 0.795), Goodness of Fit Index
(GFI = 0.784), Adjusted Goodness of Fit Index (AGFI = 0.746), Normed Fit Index (NFI =
0.743), Tucker-Lewis Index (TLI = 0.736), Comparative Fit Index (CFI = 0.759), Root Mean
Square Error of Approximation (RMSEA = 0.152), and Root Mean Square Residual (RMR =
0.086). These collectively demonstrated that the model aligns well with the observed data.
In Figure 2, the application of structural equation modeling is depicted, illustrating how the
independent variables Ethical Leadership, Knowledge Sharing, and Organizational Learning
directly and indirectly impact Organizational Effectiveness. The robustness of the model,
supported by the diverse fit indices, strengthens the credibility of the findings and underscores
the effectiveness of SEM in unraveling the complex relationships within the study.

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Figure 1: Results of structural equation model (Source: Self-developed)

Table 3 presents the standardized estimation outcomes for the primary parameters. It's
noteworthy that all associations are determined to be statistically significant at the 5% level (p
< 0.05). Moreover, these results corroborate the legitimacy of the measurement scales for the
conceptual variables incorporated in the model. Each measurement is observed to have a
relationship with other measurements as anticipated based on theoretical expectations.
Table 3: Structural model result (direct, indirect and total effects). (Source: Self-
developed)

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In summary, the study's comprehensive analysis supports the affirmation of all seven
hypotheses. Ethical leadership is found to positively influence knowledge sharing,
organizational learning, and ultimately organizational effectiveness. Knowledge sharing and
organizational learning are identified as significant mediators in the relationship between
ethical leadership and organizational effectiveness. These findings contribute valuable insights
to our understanding of the interplay between ethical leadership, knowledge dynamics, and
overall organizational success.

5. CONCLUSION
5.1. Study Limitations
Despite the robustness of this study, several limitations merit acknowledgment:
Cross-Sectional Nature: The research design adopted a cross-sectional approach, limiting the
ability to infer causality. Future longitudinal studies could provide a more nuanced
understanding of the dynamic relationships explored.
Generalizability: The study primarily focused on a specific context (Vietnamese SMEs),
potentially impacting the generalizability of the findings. Caution should be exercised when
extrapolating results to different industries or cultural settings.
Self-Reported Data: Data were reliant on self-reported measures, introducing the possibility of
response bias or social desirability. Future research could incorporate diverse data sources to
enhance objectivity.
Common Method Bias: Despite measures taken to mitigate common method bias, the
possibility remains, given the self-reporting nature of the survey. Employing additional
techniques, such as procedural remedies, could further address this concern.
Mediation Complexity: The study explored the mediating roles of knowledge sharing and
organizational learning, yet the intricacies of these processes may vary. Further research could
delve deeper into the mechanisms through which these mediating factors operate.
Acknowledging these limitations provides a foundation for refining future research endeavors
and enriching the understanding of ethical leadership, knowledge sharing, organizational
learning, and organizational effectiveness.
5.2. Future Research
Building on the insights gained from this study, avenues for future research are identified to
deepen our understanding of the complex dynamics within ethical leadership, knowledge
sharing, organizational learning, and organizational effectiveness:
Longitudinal Investigations: Conducting longitudinal studies would enable a more
comprehensive exploration of the causal relationships between ethical leadership, knowledge
sharing, organizational learning, and organizational effectiveness over time.

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Cross-Cultural Analyses: Extending research to diverse cultural contexts can uncover how
cultural nuances influence the relationships studied, providing valuable insights for global
organizations.
Qualitative Approaches: Complementing quantitative analyses with qualitative methodologies,
such as interviews or case studies, can offer a richer understanding of the contextual factors
shaping ethical leadership, knowledge-sharing practices, and organizational learning.
Impact of Leadership Styles: Exploring the impact of different leadership styles within the
realm of ethical leadership on knowledge sharing, organizational learning, and organizational
effectiveness can contribute to a more nuanced understanding of leadership dynamics.
Technological Influences: Investigating the role of emerging technologies in facilitating
knowledge sharing and organizational learning, and their impact on organizational
effectiveness, is crucial in the ever-evolving digital landscape.
Employee Perspectives: Future research could delve into employee perceptions and
experiences, providing insights into the subjective nature of ethical leadership, knowledge
sharing, and organizational learning.
Mediation Mechanisms: Further examining the intricate mechanisms through which
knowledge sharing and organizational learning mediate the relationship between ethical
leadership and organizational effectiveness will enhance the depth of understanding.
By addressing these avenues, future research endeavors can contribute to the continual
development of organizational behavior literature and provide practical implications for leaders
seeking to enhance ethical practices, knowledge dynamics, and overall organizational
effectiveness.

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